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I'm guessing that this is a bug - that that currently-useless 'sender' parameter is actually *supposed* to be telling us who initiated a chat. (The speaker, the teller, the emoter, the entity which made the attack or did the damage, etc.) Perhaps the code is improperly passing the 'receiver' rather than the 'sender' value?

The fix should be to:
a) Add the "<Person> tells you:" prefix to the chatMessage for IMs, to bring it in line with how it works everywhere else.
b) Fix the sender parameter so that it gives the entity from which the chat message originated, not the player.